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EatonETN -2.66%89 EV-to-EBITDA is 28.61 as of Jul. 26, 2026, which is 59% above its 10-year median of 17.98. GuruFocus rates ETN with a GF Score™ of 89/100 and a GF Value™ of $391.95 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,475 Industrial Products companies, Eaton ranks worse than 71.19% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Eaton's enterprise value is $178,026 Mil.
Eaton's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $6,223 Mil. Therefore, Eaton's EV-to-EBITDA for today is 28.61.
The historical rank and industry rank for Eaton's EV-to-EBITDA or its related term are showing as below:
ETN'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 8.49 Med: 17.98 Max: 30.01
Current: 28.61
During the past 13 years, the highest EV-to-EBITDA of Eaton was 30.01. The lowest was 8.49. And the median was 17.98.
ETN's EV-to-EBITDA is ranked worse than 71.19% of 2475
companies
in the Industrial Products industry
Industry Median: 15.34
vs ETN: 28.61
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
As of today (2026-07-26), Eaton's stock price is $404.07.
Eaton's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $10.230. Therefore, Eaton's PE Ratio (TTM) for today is 39.50.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Eaton (NYSE:ETN) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Eaton's share price for today is $404.07.
Eaton's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $10.230.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Eaton's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Eaton's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eaton EV-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Eaton's EV-to-EBITDA falls into.
Eaton's current Enterprise Value is $178,026 Mil.
Eaton's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,223 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Eaton (ETN) has a EV-to-EBITDA of 28.61 as of Jul. 26, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Eaton. This is 59% above median its historical median of 17.98. Over the past decade, Eaton's EV-to-EBITDA has ranged from 8.49 to 30.01. According to the industry distribution chart, Eaton ranks #1762 out of 2475 companies in the Industrial Products industry, placing it in the top 71.2%.
Is Eaton's EV-to-EBITDA too high?
Eaton's current EV-to-EBITDA of 28.61 is 59% above median its 10-year median of 17.98. Over the past 10 years, this metric has ranged from a low of 8.49 to a high of 30.01. The Industrial Products industry median EV-to-EBITDA is 15.34. Eaton's value of 28.61 is 86.5% above this industry median. Based on the distribution chart, Eaton ranks #1762 out of 2475 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Eaton has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eaton's EV-to-EBITDA compare to PH and CMI?
According to the Industrial Products industry distribution chart, Eaton ranks #1762 out of 2475 companies for EV-to-EBITDA. This places Eaton in the lower half of its industry. The industry median EV-to-EBITDA is 15.34. Eaton's value of 28.61 is 86.5% above this benchmark. Historically, Eaton's own EV-to-EBITDA has ranged from 8.49 to 30.01 over the past decade. While the company's 10-year median is 17.98 vs. the industry median of 15.34, Eaton has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for an Industrial Products company?
The median EV-to-EBITDA among Industrial Products companies is 15.34, based on 2,475 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eaton's current EV-to-EBITDA of 28.61 is 86.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Eaton. For the Industrial Products industry, the median EV-to-EBITDA is 15.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current EV-to-EBITDA is 28.61, which is 59% above median its own 10-year median of 17.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Based on GuruFocus' analysis, Eaton (ETN) is currently considered Fairly Valued. The stock's GF Value™ is $391.95, compared to a current price of $404.07 — trading 3.1% above its estimated fair value. The current EV-to-EBITDA is 28.61, which is 59% above median its 10-year median of 17.98 and 86.5% above the Industrial Products industry median of 15.34. Eaton's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Eaton (ETN), the current EV-to-EBITDA is 28.61 as of Jul. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eaton (ETN) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton stock appears to be overvalued.
The current stock price of $404.07 is trading 3.1% above its estimated GF Value™ of $391.95.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for ETN:
EV-to-EBITDA: 28.61 (59% above median its 10-year median of 17.98)
GF Value™: $391.95 vs. price of $404.07 (3.1% above fair value)
Industry Position: 86.5% above the Industrial Products median (#1762 of 2475)
No single metric tells the full story. See the ETN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
89GF Score
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